---
title: "Oil plunges below $80: US-Iran diplomacy changes the rules of the game in the market"
description: "Brent oil plunges below $80 amid rumors of US-Iran negotiations. 📉 Qatar confirms progress, but Trump prepares two scenarios: diplomacy or strike. 🌍⚖️"
date: 2026-08-05T06:52:00.000Z
lang: en
url: https://xab.info/en/posts/oil-plunges-below-80-us-iran-diplomacy-changes-the-rules-of-the-game-in-the-market
tags: [oil-prices, brent, usa-iran, donald-trump, strait-of-hormuz]
publisher: "XAB.info"
---

# Oil plunges below $80: US-Iran diplomacy changes the rules of the game in the market

![Silhouettes of oil rigs at sunset: oil prices drop below $80 due to US-Iran diplomacy](https://xab.info/media/2026/08/05/neft-ruxnula-nizhe-80-diplomatiya-ssha-i-irana/neft-ruxnula-nizhe-80-diplomatiya-ssha-i-irana-1.webp)

The global energy market is experiencing a period of high volatility. Oil prices are showing a steady decline, reacting to rumors of a possible diplomatic breakthrough in relations between the US and Iran. Investors, who previously feared a complete closure of the Strait of Hormuz, are now more optimistic in anticipation of the resumption of shipping.

### Sharp drop in quotes

The trading session confirmed the negative trend that began earlier this week. Brent crude oil futures fell 92 cents, or 1.2%, dropping to $78.44 per barrel. Over the past week, the decline in this grade has exceeded 12%. A similar situation is observed with American oil: West Texas Intermediate (WTI) futures lost $1.07 (1.4%), settling at $74.70 per barrel. The weekly decline for WTI exceeded 11%.

Yesterday, the price of Brent closed below the psychologically important mark of $80 for the first time since July 13, falling more than 5%. The market is quickly reacting to any news concerning the security of key transport arteries.

### Diplomatic deadlock or breakthrough?

The main driver of the decline was information about progress in negotiations. Qatar, acting as a mediator, stated on August 4 that the parties are moving towards ending the conflict. However, Tehran officially refutes US President Donald Trump's claims that active negotiations are already underway.

At the same time, an Axios source reported that the US plans to announce an agreement that should reopen the Strait of Hormuz. According to sources, the document is temporary and calculated for 60 days. The parties to the agreement will be Oman and Iran. The document is expected to take into account some of Tehran's demands regarding control over the waterway.

### Trump's position and escalation risks

US President Donald Trump stated that all straits in the Middle East will be open after the end of the war with Iran. He outlined two possible scenarios for achieving this goal: either through diplomatic negotiations or as a result of a military strike.

Analysts at IG note that the main sticking point remains the issue of control over the strait. Whether Iran will insist on its right to manage the waterway and whether the US is ready to make concessions on this issue are key factors determining the further dynamics of prices.

### Expert opinion

Before the start of the conflict, about 20% of global oil and liquefied natural gas supplies passed through the Strait of Hormuz. In March, against the backdrop of the worsening situation, prices rose by 50%.

Priyanka Sachdeva, Head of Market Research at Phillip Nova, warns of risks: "If diplomatic efforts fail, and physical supplies eventually cease, the current price decline may prove to be short-lived, as a reduction in inventories will amplify the impact of any shortage".